It turns out Irvine-based Allergan Inc. is going to have a sizeable presence in the 2600 Michelson tower after all, albeit as a tenant, not an owner.
Allergan agreed to sublease a large portion of the 60,012 square feet of space at 2600 Michelson, a 16-story tower near John Wayne Airport that was recently put on the market by Irvine-based L.A. Fitness International LLC.
LA Fitness announced a deal late last month to move its headquarters a few blocks to the Park Place campus, where it is going to be leasing about 90,000 square feet of space at Emmes Group of Cos.’ high-end office tower at 3161 Michelson.
That left the growing fitness chain operator with a big hole to fill in its old space. In 2010 LA Fitness had renewed its lease at 2600 Michelson, inking a five-year deal for three floors of space. That deal runs through early 2016.
Allergan is taking over most of that space, according to brokers with the Irvine office of Orion Property Partners that represent LA Fitness.
Terms of the sublease were not disclosed. Space there was being marketed for sublease by Orion at monthly rents of $1.35 per square foot.
It’s not known whether Allergan is looking to take on additional space at the building. Non-sublease space at 2600 Michelson is listed for lease at monthly rates of $2.25 per square foot.
Allergan’s long been considered a likely tenant and potential owner at 2600 Michelson. The high-profile drug maker, whose campus borders the 2600 Michelson building, was previously rumored to be a possible buyer of the 308,000-square-foot office the past few years, when the building was owned by Los Angeles-based Maguire Properties Inc.
The Business Journal reported on the speculation of a potential buy in mid-2009, when Maguire—which now operates as MPG Office Trust Inc. —was in the midst of selling several area buildings to rid itself of debt.
2600 Michelson is the largest office building—and the only high-rise—in the immediate vicinity of Allergan’s massive campus on Dupont Drive, which stretches from Teller Avenue to Von Karman Avenue.
Allergan owns nearly every other building of note in that area, and has snapped up several of those buildings over the past five or so years.
A sale with Allergan never took place, however. Last year the 2600 Michelson building was purchased out of receivership by Santa Monica-based Ocean West Capital Partners and other investors.
The tower traded hands for about $70.2 million, or roughly $230 per square foot.
Allergan is the largest new tenant to ink a deal at the building since the sale, albeit in a deal that doesn’t appear to help increase occupancy rates at the building, which is about half full.
The new owners of 2600 Michelson currently are renovating the lobby and courtyard of the property, which previously held the offices of the Business Journal.
Indio Buy
Laguna Hills-based apartment investor Clear Capital LLC has closed on the buy of an 87-unit apartment complex in the Coachella Valley, its fourth acquisition since starting up last year.
Records show the company paying a little under $4.6 million for Indio’s La Quinta Springs, a property near the intersection of Highway 111 and Jefferson Street, close to Palm Springs and La Quinta.
The property was built in 1986 and is situated on nearly 4 acres with a pool, spa and gated entry. The building was listed for sale at a capitalization rate of 7.5% and was about three-quarters occupied as of late last year, according to brokerage data.
In early 2011 Clear Capital also bought the 226-unit Watercrest at the Polo Fields apartment community, also in the Coachella Valley. Company officials said the area is positioned for growth once the national economy’s recovery gains traction.
Clear Capital is a $50 million opportunity fund formed in 2011 by Daniel Hardy, Greg Worchell and Paul Pellizon.
New Award
The Orange County chapter of Commercial Real Estate Women is sponsoring a new event that highlights achievements in the local real estate community.
CREW is putting together its first annual SPIRE Awards program, recognizing commercial real estate achievements by men and women.
Nominations, which are due this week, are open to individuals and teams in development, construction, brokerage, interior design, lending and architecture.
Awards will be presented during a cocktail reception March 1. Nomination forms are available at www.crewocspireawards.com.
